Chapter 13

Question 1

Customer relationship management (CRM) is the ability of an organization to retain profitable customers.

Answer 1

TRUE

Question 2

A limited warranty means that the company guarantees all parts of the product and all types of defects, but only for a limited period of time.

Answer 2

FALSE

Question 3

The social movement that seeks to augment the rights and powers of buyers in relation to seller is:

Answer 3

consumerism

Question 4

Common consumer complaints include all of the following except…

Answer 4

lack of consumer credit

includes:
misleading packaging or labeling.
poor quality of products.
high prices.

Question 5

The two major classifications of issues in the business/consumer relationship are

Answer 5

product information and the product itself.

Question 6

Which of the following is not a commonly recognized benefit of advertising?

Answer 6

It lowers the price of goods and services.

Question 7

Use of plot placements involve…

Answer 7

placement of products part of the storyline of a television show.

Question 8

Advertising claims that cannot be substantiated by evidence are termed

Answer 8

exaggerated claims

Question 9

Age compression is the practice of

Answer 9

targeting younger children when advertising products meant for older teenagers.

Question 10

The federal government’s major body for ensuring that business lives up to its responsibilities is the

Answer 10

Federal Trade Commission.